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How to survive the pandemic, according to entrepreneurs

By Mariel Alison L. Aguinaldo and Patricia B. Mirasol

BusinessWorld asked entrepreneurs and startup founders what lessons they have learned from the coronavirus pandemic so far.

FIND YOUR PURPOSE 


“My personal dream is to make this business rooted in purpose. Because if [a business] is rooted primarily in the purpose of helping communities solve real-world problems, profit will come after.” — Dexter Baño Jr., CEO of aerospace company OrbitX

“Find meaningful reasons to continue to run your business. Your customers need you in some capacity. The first thing we found purpose in was in participating in the relief efforts themselves. We were… trying to keep guys on the road and we heard the call from various LGUs, from various government offices, that ‘Hey, we need help moving stuff from A to B…’ — this was somewhat energizing to the team, to see that the business could respond in a positive way, that we could continue to operate our company in a way that was meaningful and made an impact.” Martin Cu, Country Head of courier service Ninja Van PH

LISTEN TO CONSUMERS, PIVOT ACCORDINGLY


“For us, it was about how we can make little tweaks to our network to enable that specific product and also address a very, very sore urgent consumer need. I see these photos of queues in the grocery stores all across the country, people queueing up two, three hours at a time and putting themselves at risk by being in those lines. As a company, we can respond to that; again, one rider keeping 50 0r 60 families at home. It is a big deal for us and a win for business. It creates a product line that we believe we can sustain in the future.” — Martin Cu, Country Head of Ninja Van PH

“On the part of the tech and scientific communities, let’s make sure that… our products are also flexible and thermostat-like to this type of crisis. If you are able to adapt to this type of crisis, you will be able to create new products out of uncertainty. I’m challenging all founders to make sure their existing products and technologies will be of help in this current crisis. If we won’t help, this won’t end soon.” — Dexter Baño Jr., CEO of OrbitX

“For a young technology company like us, it has been a reminder for us to be more flexible, and for us to adapt our business model towards shared community and stakeholder goals. Now more than ever, companies should be more agile and should be more flexible in terms of opening new services or thinking of new solutions that can support our customers. And this is the core of all of our efforts. Making sure that when we launch Grab Mart, when we launch new services, we’re able to support the needs of our customers.” — Krhizzy Pasigan, Public Relations Manager, Grab Philippines

ANTICIPATE THE FUTURE


“My advice for startups is that they need to anticipate the future; they need to build products that they can cater [to] the future. In our case, when we invested in SeeYouDoc, even though we’re not gaining traction or not being accepted, we just believed that in the future, healthcare will be mostly online.” — Noel Del Castillo, Founder and CEO, of telehealth platform SeeYouDoc

“What we’re doing so far is making sure that by the time the government says that we’re okay to resume ride-hailing operations, we have enough safety measures in place. So we are finding means to do regular disinfecting in cars as early as now. We’re also finding ways to train drivers on how safety protocols could be done, and also devising new protocols for ride-hailing. So we’re thinking a step ahead.” — Krhizzy Pasigan, Public Relations Manager, Grab Philippines

JOIN THE ONLINE REVOLUTION


“E-commerce will play a significant role in the economic recovery of this country. Every bike that we put on the road can keep 30 to 50 families—if not more—at home simply by addressing their needs for essential goods, so we feel very strongly about this point. I’ve seen how e-commerce has played a significant role in enabling an active quarantine. It can remove some of the strongest incentives for you to go outside. We have seen that food platforms and restaurants have been the most graceful to make this evolution—of brick-and-mortar stores evolving more into direct-to-consumer delivery platforms.” — Martin Cu, Country Head of Ninja Van PH

“If you will look into the process of onboarding merchants before, there are certain requirements needed, specifically business registrations, et cetera, and most of these requirements must be submitted personally or hard copy. But… to be able to onboard these new merchants, we made it easier for them to apply. So everything is now online, and now all of those hard copy materials can just be submitted online.” — Krhizzy Pasigan, Public Relations Manager, Grab Philippines

TAKE CARE OF YOUR PEOPLE


“Managing a team remotely is a huge challenge, definitely. But we just have to trust our employees and give them regular updates on our current numbers. We just have to make sure everyone is on the same page. It’s constant communication and making sure that you are updated about the position of the company.” — Andre Mercado, CEO of online real estate platform Signet Properties

“Like most companies, we didn’t have a plan for a pandemic. This teaches us that there has to be measures in place for us to be able to take care of our employees when times like this happen. We’re thinking of creating not just business continuity plans, but also welfare plans for employees should things like this happen again. We have to start thinking about how we are able to take care of our people during a crisis because it’s our people who take care of us all the time. The business would not exist without its team.” — Patrick Doromal, Owner, Oh My Gulay Delivery

“If you look at the supply of the driver partners we’ve seen a bit of a decline, because we’ve given the delivery partners the discretion to stay online… because, again, of the fear of the virus. What we told them is that it’s their decision, we give you the liberty to decide whether you’ll be online or not. But if you choose to be online, we will be rolling out all of these safety measures and support for you guys.” — Krhizzy Pasigan, Public Relations Manager, Grab Philippines 

LEARN FROM THE EXPERIENCE


“I think for most businesses ito yung parang testing point natin. Like in our case, ang dapat namin i-improve is yung capital namin. Dapat nakapag-save pa kami. But our strength is in our communication. We have good communication with our team. Yun naman yung nagamit namin in terms of thriving currently.” — Emmanuel Llego, Owner of apparel company Emgo Philippines

“It’s actually great for us that there’s a lot of takeaways we can learn from. There are some features that we need to improve on and add to our website for us to be able to cater better to both sellers and buyers—not just during the crisis but even after it, moving forward.” — Andre Mercado, CEO of Signet Properties

When it comes to coffee, ASEAN drinkers prioritize convenience 

Experts believe that the pandemic may open doors for the Southeast Asian coffee industry. Cafés may start considering beans produced in the region over those from farther, less accessible markets.

By Mariel Alison L. Aguinaldo

Southeast Asians are favoring conveniently packaged coffee during the COVID-19 pandemic. 

Indonesian cafés have begun selling and delivering coffee by the liter to their customers. In the Philippines, instant 3-in-1 coffee has a foothold among consumers. Singaporeans maintain a higher standard for their drinks, opting for premium options such as coffee capsules, drip bags, and bottled coffee such as cold brews. 

“I think people still like the convenience but not to the point of just 3-in-1’s… something that’s freshly and specially-made by baristas,” said Andrea Tan, owner of Lucid Café Singapore, in a session held on July 15 during the Food & Hotel Digital Week.

Demand for packaged brewed coffee beverages by major brands may also grow during this time. “In reality, it should’ve come before, COVID just hastened the demand for these things… We’re going to see more of that being consumed at home and outside. And it’s readily available in supermarkets,” said Emmanuel Torrejon, director of the Philippine Coffee Board, in the same session.

While convenience may be the prime consideration in many countries, there is renewed interest in slower methods such as home-brewing. In Malaysia, personal home-brewing videos have become a trend on the Internet. “Most people are on lockdown, so they have the luxury of time to actually grind the coffee with a hand grinder, and brew at home with different equipment that they can purchase online,” said Yip Leong Sum, president of the Malaysia Specialty Coffee Association.

Around March, Dalgona coffee became a global craze with pictures and videos of the foam-topped beverage making the rounds on Instagram and TikTok.

However, some experts believe that homemade coffee removes an essential part of the experience. “Coffee is a social beverage. The house market is small and it’s very insignificant. The bigger market is where it’s drunk together with friends, family, associates, during business meetings, in hotels and airlines,” said Mr. Torrejon.

Globally, the coffee industry is suffering from the effects of COVID-19. According to researcher Marex Spectron, more than 95% of the out-of-home market, which includes cafés, have already closed due to the pandemic. Big companies such as Starbucks Corp. are retooling their business model, hoping to attract consumers that are hesitant to venture out of their homes. 

While this may seem like a dismal forecast for the industry, the panel believes that the pandemic may open doors for the Southeast Asian coffee industry. Cafés may start considering beans produced in the region instead those from farther, less accessible markets.

“Other than Indonesia and Vietnam, we will see Laos, Cambodia, Myanmar, and the Philippines probably adding to the pie of the cafes of ASEAN, who will continue to serve ASEAN coffee. It just might be the break that we’ve been looking for,” said Pacita Juan, president and co-chair of the Philippine Coffee Board.

Rainy-day laundry blues: Why care+hygiene are musts this rainy season

Washing clothes on a normal day can be a challenge, what more when you need to do it during the rainy season?

Laundry can take a lot of time and effort. First, you must do all the preps: reading the proper care label for each garment, sorting the whites from the colored ones, and grouping them per batch. These initial steps can already be troublesome and time-consuming for a lot of people.

On top of these, since drying clothes in the sun is out of the question, the extra hassle of doing it indoors leaves us with a few more challenges.

Here are some helpful tips that you can use to shake off all the rainy-day laundry blues. Win the laundry game with Care+Hygiene and keep your clothes clean, hygienic, and fresh-smelling every day.

FOR INDOOR DRYING

During the rainy season, our clothesline, more often than not, serve very little purpose for drying clothes. We either let clothes dry in front of the electric fans or even blow-dry it using hairdryers.

Good thing with Panasonic NA-S106FX1LP Front Load Washer Dryer, washing and drying clothes are now made convenient. You just need to select a course and let the washing machine take care of everything.

The larger drum also makes it easier for clothes to spread out inside resulting to less wrinkling of the garments.

AGAINST KULOB

Kulob is arguably the most-dreaded enemy during the rainy season. It is when the clothes left to dry indoors develop distinct and unpleasant odor, caused by bacteria and germs that grow on the fabrics because of the lack of proper ventilation.


With Panasonic Washing Machine that has the Blue Ag+ feature, bacteria elimination in clothes is a breeze. Even your delicate garments which are normally dried indoors are kept smelling fresh after every wash.

Blue Ag+ technology also eliminates 99.99% of bacteria and still has an antibacterial effect even after washing. This stops the growth and spread of the odor-causing germs.

AGAINST BACTERIA AND ALLERGENS

Wet clothes can cause a buildup of bacteria and allergens, making them unhygienic especially for infants. Parents must practice pre-care before washing to ensure safety. Soaking them in warm water or using chlorine bleach helps eliminate these bacteria and allergens. However, the additional step only makes the entire washing experience tedious. Additionally, chlorine bleach can only be used on white garments.

An easy and effective way to ensure the hygiene of your family is to use a washer that combines the pre-care step with the actual laundry process.

Panasonic Washing Machine with Blue Ag+ releases silver ions that sterilize clothes, even with cold water, which make it suitable for delicate garments and colored items. There’s also the StainMaster+ feature that helps protect babies from allergies as it effortlessly washes away stubborn stains, bacteria, dust mites, and allergens in clothes using hot water (up to 90ºC).

AGAINST STUBBORN STAINS

With the rain comes a slew of other hard-to-remove stains like mud and dirt.

The ActiveFoam System feature of Panasonic Washers easily remove these stubborn stains by creating fine, dense foam that penetrates deep into fabric to thoroughly remove dirt and lift stains easily. Partnered with the StainMaster+ feature, taking care of these hard-to-remove stains is now made easier.

So, doing laundry this rainy season doesn’t have to be a hassle. Enjoy clean, easy, hygienic, and fresh-smelling clothes every day and preserve the quality and texture of your clothes with the perfect laundry partner– the Panasonic Washing Machine.

Unleash the clean freak in you as #CareWins every day at home with the Japan Quality appliances of Panasonic.

Learn more and discover which Panasonic Washer is the best fit for you. Click here:

https://bit.ly/ShopPanasonicWasher

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Second COVID-19 wave forces new travel curbs around the globe

SYDNEY/LONDON — Nations in Asia imposed new restrictions on Monday, while an abrupt British quarantine on travelers from Spain threw Europe’s summer reopening into disarray, as the world confronted the prospect of a second wave of COVID-19 infections.

In the United States, still dealing with its first wave as infection rates have climbed since June, President Donald Trump’s national security adviser, Robert O’Brien, became the most senior official to test positive. The White House said Trump had not interacted with him in days and was not at risk.

Surges were reported in several countries that previously appeared to have the virus under control.

Australia recorded a record daily rise. Vietnam was forcing tens of thousands of tourists to evacuate the central city of Danang. Mainland China, where the virus first emerged late last year, confirmed the most locally transmitted cases since early March.

Hong Kong banned gatherings of more than two people, closed restaurant dining, and made face masks mandatory in public.

A surge of new infections in Spain, another early epicenter of the pandemic, prompted Britain on Saturday to order all travelers from there to quarantine for two weeks, undoing months of preparation for Europe’s reopening to tourism.

On Monday, the Foreign Office dealt Madrid a new blow by extending its advice against non-essential travel to mainland Spain to include the Balearic and Canary Islands.

The World Health Organization (WHO) said travel restrictions were not a long-term answer. It said proven strategies such as social distancing and face covering must be employed to halt the virus spread.

“It is going to be almost impossible for individual countries to keep their borders shut for the foreseeable future. Economies have to open up, people have to work, trade has to resume,” WHO emergencies program director Mike Ryan said.

AN ‘ERROR’

Officials in some European and Asian countries where the virus is spreading again said new outbreaks could be contained with local measures rather than nationwide shutdowns.

Britain’s quarantine was an “error,” Spanish Prime Minister Pedro Sanchez said on Monday.

The rebound in infections is focused in two regions, he said, adding: “In most of Spain, the incidence (of the disease) is very much inferior to even the numbers registered in the United Kingdom.”

Spain’s hotels on Monday offered to pay for foreign tourists to take coronavirus tests. Last year, Britons made up over a fifth of foreign visitors to Spain, which relies heavily on tourism.

Airlines and travel businesses that managed to survive the first wave now worry that an aborted reopening could be fatal.

Europe’s biggest airline, Ryanair, cut its annual passenger target by a quarter on Monday and warned a second wave of COVID-19 infections could lower that further.

Europe has yet to lift bans on travelers from several countries, including the United States, where premature reopenings have led to record numbers of infections and deaths in many states.

BASEBALL IN JEOPARDY

A pandemic-shortened North American baseball season, launched last week in empty stadiums, suddenly appeared in jeopardy after 12 players and two coaches on the Miami Marlins tested positive while on the road in Philadelphia. Monday’s games were postponed in both cities.

Nearly 200 federal healthcare workers have been deployed to California’s Central Valley agricultural breadbasket, where hospitals are overwhelmed with COVID-19 cases as new infections soar, Governor Gavin Newsom said.

Florida in particular has been hard hit this month, with 10,000 new cases a day becoming the norm across the state. Hospitals have called in extra staff as workers become sick.

“In 10 years of medicine, I never had to put another nurse on life support. I never had to worry about my co-workers dying,” said Kevin Cho Tipton, a critical-care nurse practitioner who works at one of Miami’s largest public hospitals. “It’s been emotionally very challenging, physically very challenging.”

US Senate Republicans on Monday proposed a coronavirus aid package hammered out with the White House, paving the way for negotiations with Democrats before expanded unemployment benefits for millions expire this week. The plan sparked immediate opposition from both Democrats and Republicans.

Nearly 150,000 people have died of COVID-19 in the United States out of more than 4.2 million confirmed cases.

In China, which managed to squelch local transmission through firm lockdowns after the virus first emerged in the central city of Wuhan, a new surge has been driven by infections in the far-western region of Xinjiang.

Australian authorities, who have imposed a six-week lockdown in parts of the southeastern state of Victoria, said it could last longer after the country reported its highest daily increase in infections.

In Japan, the government said it would urge business leaders to ramp up anti-virus measures such as staggered shifts, and aimed to see telecommuting rates return to levels achieved during an earlier state of emergency.

Vietnam was evacuating 80,000 people, mostly local Vietnamese, from the tourism hot spot of Danang after three residents tested positive at the weekend. Until Saturday, Vietnam had reported no community infections since April. — Reuters

Moderna, Pfizer start decisive COVID-19 vaccine trials, eye year-end launches

Moderna Inc. and Pfizer Inc. launched two 30,000-subject trials of COVID-19 vaccines that could clear the way for regulatory approval and widespread use by the end of this year, the companies said on Monday.

The trials, both announced on Monday, are the first late-stage studies supported by the Trump administration’s effort to speed development of measures against the novel coronavirus, adding to hope that an effective vaccine will help end the pandemic.

Moderna stock rose 9%. Pfizer shares rose 1.6% in after-hours trade and its partner BioNTech, which developed the vaccine, rose 4.2%.

Both vaccine candidates rely on a new technology that allows for faster development and manufacturing than traditional vaccine production methods but does not have an extensive track record.

So-called mRNA, or synthetic messenger RNA (mRNA), teaches the immune system to recognize and neutralize the coronavirus by mimicking its surface.

Moderna, which has never brought a vaccine to market, has received nearly $1 billion from the US government, which is helping bankroll several vaccine candidates under its Operation Warp Speed program.

Pfizer has an agreement to sell vaccines for 50 million people to the US government for around $2 billion, if the vaccine is effective.

More than 150 coronavirus vaccine candidates are in various stages of development, with some two dozen prospects already conducting human testing.

Johnson and Johnson is launching clinical trials in the US this week and could start a larger, late-stage trial as early as September. British drugmaker AstraZeneca Plc said it will begin large-scale US trials this summer of its vaccine under development with Oxford University researchers.

“Having a safe and effective vaccine distributed by the end of 2020 is a stretch goal, but it’s the right goal for the American people,” National Institutes of Health (NIH) Director Francis Collins said in a release announcing the start of Moderna’s large Phase III trial.

Manufacturers are ramping up production while testing is underway in order to respond as soon as possible to virus, which is still spreading rapidly around the world. COVID-19 has killed nearly 650,000 people worldwide and battered economies.

Moderna could have tens of millions of doses ready when and if the vaccine is deemed safe and effective, Collins told reporters on a call.

Pfizer said that if the trial was successful, it could seek regulatory approval as soon as October and supply vaccines for 50 million patients, at two doses each, by the end of the year.

Pfizer aims for about 1.3 billion doses by the end of 2021, and Moderna aims for 500 million–1 billion doses a year, beginning 2021, Moderna Chief Executive Stephane Bancel said on the call.

The late-stage trials are designed to evaluate the safety of vaccines and determine if they can prevent symptomatic COVID-19.

Anthony Fauci, the top US infectious disease official, said a readout from the Moderna trial could come by November or even earlier. Dr. Fauci said he was “not particularly concerned” about the vaccine’s safety after seeing data from earlier, smaller trials. He also said he had briefed President Donald Trump about the trial the Oval Office on Monday.

As other companies ready inoculations, the COVID-19 Prevention Network, a US government-funded program formed by the NIH, said it plans to roll out a large-scale clinical trial of a COVID-19 vaccine candidate with at least 30,000 participants each month through fall. — Reuters

Pandemic-caused recession leads to drop in meat consumption

By Mariel Alison L. Aguinaldo

Consumers are buying less expensive cuts of their preferred meat or scrapping meat from their diet altogether, said global food industry experts, who cited the financial uncertainty brought about by the coronavirus pandemic.

“People do not consume as much at home. Despite all the conversations about how they are cooking more and entertaining more, what they’re doing at home, it’s different,” said Rupert Claxton, meat director at international food industry research firm Gira, in a webinar.

Consumption may drop even further as more employees are laid off from work. In April, the International Monetary Fund said that the current recession would be the worst since the 1930s Great Depression. In the Philippines, the latest Labor Force Survey showed the unemployment rate surged 17.7% in April from the 5.1% recorded in the same month last year, or equivalent to a total of 7.25 million jobless Filipinos that month compared to the 2.27 million in April 2019.

According to the panel, this has led consumers to pull back on meat consumption and switch to cheaper alternatives, such as poultry and fish, or even stop eating meat altogether. 

“In Asia… we could survive without meat with food that can fill up the stomach, such as noodles and rice. You could survive on less than a dollar a day,” said Gordon Butland, director at G&S Agri Consultants Co., Ltd, in the same session.

It may take a while before meat markets fully recover. While China’s food-service sector is expected to be back in full swing back in 2021, its US and Europe counterparts are expected to continue suffering from negative sales in the same year. “[Recovery is] going to be very slow, and people are going to be cautious because of the recessionary impact, said Mr. Claxton.

Furthermore, the length of the recession will dictate consumer habits. “If these forced changes of availability or [expensiveness] are short, you’d probably go back very close to what your habits were before. But if that duration is prolonged… there could be a partial or total permanent change in habits,” said Mr. Butland.

Pag-IBIG home loan releases rise as economy reopens

Pag-IBIG home loan releases increased over the last two months as officials cited the continuous enhancements to the agency’s loan programs while making services more accessible to members amid the pandemic.

“We fully support the administration’s efforts, led by President Duterte, in helping our fellow Filipinos achieve their dream of homeownership even during these challenging times. And, with our recent offering of promo rates on our housing loan, we expect even more members to secure their own homes in the coming months. This also plays a major part in our country’s road to recovery because as more members secure homes, the more jobs it would generate for our fellow Filipinos,” said Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.

Pag-IBIG Fund started the year on a high note with home loan releases reaching P5.5 billion in January, then rising further to P6.5 billion in February, exceeding the amount released for the same months last year by 17 percent. With such accomplishments in the first two months of 2020, Pag-IBIG was on track to release P100 billion in home loans by the end of the year.

But with the rise of the Covid-19 infection in March and the implementation of strict quarantine measures imposed in Metro Manila and other parts of the country for national safety, home loan releases dipped to P3.8 billion in March and P.88 billion in April.

In May, as quarantines were either eased or lifted, the numbers started to improve when home loan releases increased to P1.2 billion in May and jumped even further to P2.9 billion in June.

In total, Pag-IBIG Fund has released over P20.80 billion from January to June to finance the acquisition of 20,631 homes for its borrowers. Out of the total amount, 91 percent or P18.94 billion were released as socialized and low-cost home loans for the benefit of 20,084 Pag-IBIG Fund members, which include members who belong to the minimum-wage and low-income sectors.

“In the last few years, under the administration of President Duterte, Pag-IBIG Fund achieved a string of ‘best year ever.’ Since 2016, we have broken our record for home loan releases each year. We were getting ready for our best year yet in 2020 but it took a pandemic to slow us down. The improvement in our numbers in the past two months shows how responsive and well-positioned Pag-IBIG Fund is, and we are confident that we are on our way to recovery. Our numbers may not be record-breaking like in the past years, but this is only temporary. For Pag-IBIG, 2020 will be a story of strength, resiliency and service to members as we tackle the challenges of the ‘better normal’,” said Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.

Regional Updates (07/27/20)

Container COVID lab

A containerized RT-PCR laboratory for testing coronavirus disease 2019 (COVID-19) has been set up at the Bohol Medical Care Institute compound, and will now undergo the health department’s accreditation process. The Bohol provincial government, in a statement, said the P20-million contract for the facility includes all the equipment, laboratory personnel training, documents for the accreditation, and preventive maintenance for one year. The local government dismissed the claim of what it called “some rabid critics” that the project is overpriced, citing that the cities of Davao and Zamboanga bought the same testing facility for the same amount.

Gov’t says overcrowding at Rizal stadium due to unexpected stranded people

ORGANIZERS OF the government’s program in sending locally stranded people to their home provinces said the overcrowding last weekend at the Rizal Memorial Stadium was due to the arrival of individuals who were not registered for the scheduled trips. Presidential Management Staff Assistant Secretary Joseph B. Encabo, who heads the program, called on the public not to simply “walk-in” during the scheduled processing for health protocols. “Huwag pong padalus-dalos ang desisyon na pupunta sa venue na walang abiso dahil magkakaroon po tayo ng maraming concerns diyan, not only logistically speaking but of course, iyong accommodation ninyo at ang pagkain (Please don’t suddenly decide to go to the venue without any advisory because we will have many concerns there, not only logistically speaking but of course, also your accommodation and food),” he said in a briefing on Monday. Last Friday, the stadium was crowded with people, with hardly any social distancing observed, as trips were set for people going back to various parts of the Visayas and Mindanao. Mr. Encabo said the crowd consisted of those who were scheduled to leave and people who only walked-in that day. — Gillian M. Cortez

Killed Manila prosecutor was tailed from Laguna

THE MANILA prosecutor ambushed and killed on July 7 was tailed from Laguna by his assailants based on the probe of the National Bureau of Investigation (NBI), Justice Secretary Menardo I. Guevarra said. Mr. Guevarra said the state agents examined closed circuit television footage and saw that Jovencio Senados, chief inquest officer of Manila, was followed all the way from Laguna. “(T)he plate number attached to the suspects’ vehicle was a fake plate number,” Mr. Guevarra told reporters via Viber, noting that the NBI also obtained copies of reports and photographs from the police. “I expect another progress report from the NBI within the week,” he added. Mr. Guevarra previously said the attack against Mr. Senados “highlights once again the grave peril that our prosecutors face each day in the discharge of their duties.” The National Union of Peoples’ Lawyers has recorded 50 lawyers, judges and prosecutors killed since 2016. — Vann Marlo M. Villegas

Mental Health center chief, driver shot dead

THE MEDICAL chief of the National Center for Mental Health (NCMH) and his driver were shot dead by motorcycle-riding gunmen in Quezon City Monday morning. The police reported that Roland L. Cortez, 61, and his 46-year-old driver, Ernesto Dela Cruz, were gunned down in Barangay Culiat at around 7 a.m., soon after leaving his residence. Policemen who were on their way to a quarantine checkpoint spotted the vehicle at the gutter and stopped to inspect. A bystander told probers the suspects sped off towards Commonwealth Avenue. The victims sustained multiple gunshot wounds and police investigators recovered eight bullet casings and two fire bullets from firearms of unknown caliber at the scene. A .9mm caliber handgun was also found beside Mr. Dela Cruz’s body. Mr. Cortez became controversial in April following allegations that he and other officials were covering up cases of coronavirus disease 2019 (COVID-19) infections at the NCMH. The doctor denied the allegations saying they submit daily situation reports to the Department of Health (DoH). The NCMH has 67 COVID-19 cases among its personnel and patients, with seven deaths and 46 recoveries. The DoH said it is coordinating with the police “to ensure that the perpetrators are prosecuted to the fullest extent of the law.” It said, “The DoH denounces all violent acts committed against healthcare workers, especially during these difficult times.” — Emmanuel Tupas/PHILSTAR and Vann Marlo M. Villegas

Baguio reimposes limited shopping days, liquor ban, other restrictions

BAGUIO MAYOR Benjamin B. Magalong has reimposed quarantine restrictions starting July 27 as the city’s coronavirus cases increased to 95, with 45 active, 48 recovered, and two deaths as of July 26. The renewed rules include the following: strict border control with only people on essential travel allowed in; liquor ban; two days per week shopping schedule per household; and lockdown on Sundays. In an advisory released Monday, Mr. Magalong assured residents that the health system and other protocols in place can handle the resurgence of cases, but at the same time called for the need to impose measures to mitigate potential transmissions. “Alarming as it seems, I want to assure the public that we are prepared for the surge. We have been working non-stop to keep our isolation, treatment, and critical care facilities ready,” he said. Several barangays in the city where the new patients reside have been placed on lockdown, which means no one will be allowed in or out of the village until contact tracing activities are completed. Mr. Magalong, a former police officer, has been appointed head of the COVID-19 national task force’s contact tracing system.

Duterte fails to detail recovery plan

By Norman P. Aquino, Special Reports Editor
Jenina P. Ibañez, Charmaine A. Tadalan, Beatrice M. Laforga
and Gillian M. Cortez, Reporters

PRESIDENT Rodrigo R. Duterte on Monday asked lawmakers to pass stimulus measures to revive an economy on the brink of a recession caused by a coronavirus lockdown that is one of the world’s strictest and longest.

Analysts, business leaders and opposition lawmakers said he failed to say how exactly he plans to go about it.

The tough-talking Philippine leader devoted the first hour of his almost two-hour state of the nation address — his penultimate, before he steps down in two years — lauding state response to the pandemic and urging Congress to support his economic recovery plan.

“We must facilitate the country’s economic recovery,” Mr. Duterte said in a speech at the House of Representatives, where about 50 VIP politicians gathered to hear him speak. The rest of his audience was made up of Cabinet secretaries, senators and congressmen, and local government officials who listened in from various Zoom Cloud meetings.

He asked lawmakers to fast-track the second version of the bill giving him special powers in dealing with the pandemic, including realigning government funds.

The first law that has since expired let him realign about P275 billion to state programs against the coronavirus. The second measure seeks to let him allocate another P140 billion for various programs for the health emergency.

Mr. Duterte vowed not to rush the reopening of the economy, saying the good “would be outweighed by the bad it will generate.” “Haste makes waste, The recent surge of infections when you open little windows of resumption of business is proof of that.”

Mr. Duterte also asked Congress to hasten the approval of the bill seeking to immediately lower the corporate income tax to 25% from 30% while giving the government the flexibility to grant both fiscal and nonfiscal incentives.

He also sought the approval of the measure allowing banks to transfer bad loans and assets to asset management companies.

The President promised to continue his administration’s “Build, Build, Build” infrastructure program, noting that these “are an effective tool to help spur high growth, attract investments, create jobs and achieve financial inclusion for all Filipinos.”

After an hour, he segued from his prepared speech and spent almost half an hour threatening to “kill” drug traffickers and asking lawmakers to revive the death penalty for heinous crimes including illegal drugs.

Mr. Duterte, who is down to his last two years in office and barred by law from seeking reelection, is under pressure to revive the economy to keep his political capital and ensure the victory of his chosen candidate in the 2022 presidential elections. At least three presidents before him had either been sued or jailed for corruption.

Mr. Duterte said he pleaded with Chinese President Xi Jinping five days ago to prioritize the Philippines for supply once it finds a vaccine for the coronavirus.

“If they have the vaccine, can they allow us to be one of the first or if it’s needed, if we have to buy it, that we be granted credit so that we can normalize as fast as possible?” he said, reiterating that face-to-face classes won’t happen until a vaccine is found.

The coronavirus has sickened more than 82,000 and killed almost 2,000 people in the Philippines, more than double from end-June and the second-highest number of infections in Southeast Asia even if Mr. Duterte had enforced one of the world’s earliest quarantines.

“Many of the points he emphasized were old talking points — drugs, criminality and corruption,” said Herman Joseph Kraft, an associate professor and chairman of the University of the Philippines’ Political Science department.

“There were a number of potentially inconsistent declarations. He threatened to close down telcos while at the same time emphasizing the need to switch to online modalities in government service and education,” he added.

Mr. Kraft also said the President had failed to detail a national strategy to combat the COVID-19 pandemic. “There was no clear statement about this, just aspirations about increasing testing.”

The government is hard-pressed to come up with a road map for economic recovery as the Philippines faces its worst slump in three decades after the lockdown shut businesses and sapped consumption.

The economy shrank by 0.2% in the three months through March, the first slump after more than two decades of growth, while the unemployment rate hit an all-time high of 17.7% in April. Economic managers expect economic output to shrink by as much as 3.4% this year amid a worsening fiscal outlook.

MORE DETAILS
In his speech, the President also vowed to help micro-, small- and medium-sized enterprises and proposed to institutionalize a government program to send people back to the provinces by refocusing economic and social welfare services to the countryside.

Business groups said they wanted to hear the details of stimulus measures, especially for small businesses.

“We wanted him to mention the proposed Accelerated Recovery and Investments Stimulus for the Economy Act,” Philexport President Sergio R. Ortiz-Luis, Jr. said by telephone after the President’s address, referring to a P1.3-trillion stimulus package that allots a budget for mass testing, wage subsidies and help for small companies.

“That’s a big thing for us and it’s important for the recovery and investment,” he said.

Business groups in their wish lists last week asked for economic stimulus measures and legislation that will open the country to foreign direct investment.

Mr. Ortiz-Luis also said he waited for Mr. Duterte to mention the national ID system and a plan to revamp an inter-agency task force on the coronavirus to include more inputs from economic managers and the business sector.

Chris Nelson, executive director at the British Chamber of Commerce of the Philippines, said he was looking forward to the budgets that would be allotted to  specific sectors under the P140-billion fund of the so-called Bayanihan to Recover as One bill.

In one of his ad-libs, Mr. Duterte threatened to shut down telecommunication companies if they fail to improve their service by December.

“If you are not ready to improve, I might just as well close all of you,” he said, threatening to seize the companies in favor of the government.

He also renewed his attacks on ABS-CBN Corp., branding the Lopez family, who owns the media giant, as oligarchs, weeks after congressmen rejected the broadcast network’s plea for a new franchise.

A high-ranking official at dominant carrier PLDT, Inc. declined to comment on the President’s threat.

“We heed the call of the President to improve telco services,” rival Globe Telecom, Inc. said in an e-mailed statement. “Service performance and increased consumer demand for data are the key reasons why we have been investing billions of dollars to upgrade and improve our network,” it added.

Toward the close of his speech, Mr. Duterte reiterated his policy of diplomacy in dealing with the sea dispute with China.

“Unless we are prepared to go to war, I would suggest we treat this with diplomatic endeavors,” he said. “They are in possession of the property. So what can we do? We have to go to war and I cannot afford it.”.

Mr. Duterte’s speech had some good points, but these were drowned out when he attacked opposition Senator Franklin Drilon for defending the Lopezes and talking about his war on drugs, Maria Ela L. Atienza, a political science professor at UP, said in an e-mailed reply to questions.

“It would have been better if he stuck with the prepared speech and laid out a clearer road map to improve the country’s response to the pandemic,” she added.

Mr. Duterte’s address left a “big hole” in his administration’s overall response to the pandemic, Albay Rep. Edcel C. Lagman said by telephone.

“People were expecting the President to announce a road map of his administration in responding to the COVID-19 pandemic,” he said, adding that the budget under the Bayanihan 2 bill was not enough to address the crisis.

Opposition Senator Francis N. Pangilinan questioned the President’s push to revive the death penalty. “COVID, hunger and joblessness of millions are serious problems, yet the death penalty is what’s being pushed,” he said in a social media post.

Mr. Duterte locked down the main island of Luzon in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown for the island twice and thrice for the capital region. The lockdown in Metro Manila has since been eased, with more businesses allowed to reopen with a skeletal workforce. Mass gatherings remained banned.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Wage subsidy extension sought as most firms face cash crunch

The government gave wage subsidies to small businesses during the strict lockdown in April. — PHILIPPINE STAR/EDD GUMBAN

By Beatrice M. Laforga, Reporter

THE Philippine government should consider extending the wage subsidy program for small firms, the Asian Development Bank (ADB) said, after a survey showed more than half of businesses are facing a cash crunch amid the pandemic.

In its study “The COVID-19 Impact on Philippine Business” published Monday, ADB said enterprises faced a “sharp deterioration of financial conditions after the COVID-19 (coronavirus disease 2019) outbreak,” with only 9.35% of firms surveyed saying they had savings to run their businesses for over six months.

The survey showed 33.6% of firms no longer have cash or savings to cover operation costs, while another 36.5% said they might run out of working capital within three months.

The ADB’s Economic Research and Regional Cooperation Department conducted the enterprise survey, together with the Finance department, from April 28 to May 15 in order to assess the impact of pandemic and strict quarantine measures on businesses. The government placed Luzon island, which accounts for 70% of national gross domestic product, under an enhanced community quarantine (ECQ) starting mid-March.

The survey of 2,481 businesses showed microenterprises suffered the “most serious shortage of working capital,” while larger companies have enough liquidity to survive for more than six months.

The ADB recommended the government extend the wage subsidy program, as the survey showed this was the most requested government support measure by enterprises.

The payment of wages and social security contributions was the “single most important payment concern” for most firms surveyed.

“Micro and small enterprises were about 10 percentage points more likely to request a wage subsidy than large enterprises,” it said.

As most businesses were forced to shut operations during the lockdown, the government rolled out a wage subsidy program in May. Under the program, employees of small businesses received up to P8,000 per month for two months to compensate for the lost income. Around P45.6 billion in cash aid was distributed to about 3.1 million workers.

“The use of online payment systems greatly increased the efficiency of getting payments to workers, with about 97% of payments made by early June. It would be useful to extend the program, particularly for sectors hardest hit by the downturn, notably in retail, transport, and tourism,” ADB said.

Other support measures sought by enterprises include deferment of tax payments, low interest or subsidized loans, and tax reductions or credits.

“Businesses and their employees will need to be protected against the spread of the virus even if lockdown measures are lifted and businesses reopened,” ADB said.

Many firms reported experiencing difficulty in accessing short-term loans, with around 53% finding it harder to borrow P50,000 within a week compared to a year ago.

“These figures suggest that overall credit constraints are becoming more binding even for a relatively small amount of liquidity,” ADB said.

The survey showed the majority (53.8%) of firms used their own funds or retained income to continue business operations during the enhanced community quarantine (ECQ) which started in mid-March. Another 22.3% borrowed from relatives and friends and 15% applied for loans from banks, while the rest either got support from a business partner, borrowed from other financial institutions or received financial aid from the government.

EFFECT OF LOCKDOWN
“While critical in safeguarding public health against the spread of COVID-19, the ECQ and other quarantine/lockdown measures dramatically limited business activities throughout much of the Philippines,” the ADB said.

Two-thirds of firms closed temporarily once ECQ began on March 16, while 29% continued limited operations. Of those with limited operations, 78% reported less than 50% of their business was operational.

Nearly 40% of the respondents experienced “severe bottlenecks in the product supply chain” during the lockdown, hampering their production.

“There was no change in the cost of supplies and raw materials after the ECQ began for 52.6% of enterprises; 26.1% reported an increase in cost; while 21.3% reported a decrease,” ADB said.

The survey showed businesses are willing to adapt as the country shifts to new normal which include implementation of safety protocols such as wearing face masks, limiting group interactions, routine check of temperatures, and keeping a record for contact tracing.

Businesses are open to digitalization, as nearly half of respondents asked regulators to reassess regulations on digital transactions.

ADB said businesses should also be encouraged to go online, with only 14% of respondents currently using digital means to sell their goods or services.

“Getting connected in this way will not only assist businesses to keep operating in the current situation but will also help during a possible second wave later, and more generally to expand their customer base under normal and ‘new normal’ business conditions,” it said.

As part of recovery programs and policies, the ADB suggested facilitating debt restructuring for many businesses.

“Commercial banks and the central bank should closely monitor debt levels and repayment capabilities. In many cases, debt will need to be further restructured to give firms time to repay,” it said.

The ADB said follow-up surveys will be rolled out every two months, with surveys already scheduled this month and September.

Banks tighten lending standards amid lockdown

Most businesses were shuttered during the enhanced community quarantine (ECQ) in Metro Manila. Photo shows a near-empty intersection in Bonifacio Global City, Metro Manila on March 16 when the ECQ started. — BLOOMBERG

MOST BANKS imposed more stringent overall lending standards in the second quarter when most parts of the country were under a strict lockdown, a survey by the central bank showed.

“We have observed a slowdown in bank lending during the quarter. There has been a tightening of bank lending standards. This is due to the less favorable economic outlook and to banks’ reduced tolerance for risk,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a pre-recorded speech during a briefing on Monday.

The latest Senior Bank Loan Officers’ Survey released by the BSP showed most respondent banks tightened their credit standards for both enterprises and households during the April to June period.

“This is the first time that the majority of respondent banks reported tighter credit standards following 44 consecutive quarters of broadly unchanged credit standards,” Lara Romina E. Ganapin, acting deputy director of the BSP Department of Economic Research, said during the briefing.

The trend of tightening credit standards reported by banks appear to be similar to what was observed during the global financial crisis in the first quarter of 2009, Ms. Ganapin said.

The survey looks to gauge banks’ lending decisions. Only 51 out of 64 banks sent their response to the survey between June 1 to July 7.

Majority of the banks (69.4%) reported tighter loan standards for all enterprises — from top companies to microenterprises, compared to 24% in the first quarter.

The diffusion index (DI) approach likewise showed net tightening in overall credit criteria.

“Respondent banks attributed the tightening of credit standards largely to less favorable economic outlook, deterioration in the profiles of borrowers, and banks’ reduced tolerance for risk, among other factors,” the BSP said.

Meanwhile, 60.6% of respondent banks said they implemented stricter credit standards for consumers during the quarter, up from the 22% that reported tighter credit standards in the prior quarter. This covered all types of consumer loans, such as housing, credit card, auto, and personal/salary loans.

During the quarter, banks reduced credit line sizes, imposed more rigorous collateral requirements and loan agreements, and increased the use of interest rate floors.

Majority of the respondent banks expect tougher loan criteria for both enterprises and households in the next quarter, amid the worsening economic outlook and lower-risk tolerance of lenders.

Meanwhile, banks surveyed saw lower overall demand for loans from enterprises and households in the second quarter.

The slower loan demand from businesses was attributed to the “deterioration in clients’ business prospects amid the lockdown, decline in customer inventory financing needs and working capital requirements.”

Lower household consumption and housing investments were cited as the main reason for the decline in household loan demand during the period. — Luz Wendy T. Noble

J-Trec group bids for subway train sets

By Arjay L. Balinbin, Reporter

ONLY the joint venture of Sumitomo Corp. and Japan Transport Engineering Co. (J-Trec) submitted on Monday a bid proposal to provide train sets for the Metro Manila Subway Project Phase 1, the Transportation department said.

“One JV submitted bid: J-Trec and Sumitomo Corp.,” Transportation Assistant Secretary Goddes Hope O. Libiran said in a phone message to BusinessWorld, speaking for Transportation Undersecretary for Railways Timothy John R. Batan.

To recall, the J-Trec-Sumitomo JV was awarded in July last year the contract for the rolling stock package of the North-South Commuter Railway Project (Malolos to Tutuban) in the total amount of P739.48 million and ¥23.84 billion, according to a copy of the notice of award posted on the official website of the Department of Transportation (DoTr).

Sumitomo is also one of the maintenance service providers of Metro Rail Transit Line 3 (MRT-3), along with Mitsubishi Heavy Industries Engineering, Ltd. and TES Philippines, Inc.

The submission of bids for the train sets was initially scheduled for March 17 but was moved to July 27 amid the ongoing coronavirus pandemic.

Bids for the train sets should be submitted along with a ¥600-million bid security at the Procurement Service of the Department of Budget and Management (DBM-PS) in Manila.

The DoTr announced in December last year its invitation to Japanese firms and Japanese-led joint ventures to bid to provide train sets, as well as electrical and mechanical (E&M) systems and rail track works as part of the first phase of the Metro Manila Subway Project, one of the current administration’s flagship developments funded by Japan official development assistance (ODA).

The department sought bids from Japanese firms “for the design, execution and completion of 30 train sets consisting of eight electric multiple units” or a total of 240 train cars.

In February, the department said Hitachi Ltd., Sumitomo, and Mitsubishi Corp. bought bid documents for the rolling stock package of the project.

Sumitomo, Mitsubishi, Mitsui & Co. Ltd., and Marubeni Corp. also purchased bidding documents for the contract to provide E&M systems and track works. Two Philippine-based firms — construction giant D.M. Consunji, Inc. and KDDI Philippines Corp. — also bought bidding documents for this package.

The deadline for submission of bids for E&M and track works was originally set on March 24, with an ¥800-million bid security. It was moved to Aug. 17, according to a bid bulletin published on July 7.

The subway will have 17 stations, namely: East Valenzuela, Quirino Highway, Tandang Sora, North Avenue, Quezon Avenue, East Avenue, Anonas, Katipunan, Ortigas, Shaw, Kalayaan Avenue, Bonifacio Global City, Lawton, Senate, FTI, NAIA Terminal 3, and Bicutan.

The first phase covers the first three underground stations, tunnels and depot construction, depot equipment and buildings.

The government broke ground for the first three stations in February last year after the Transportation department signed a P51-billion deal with the Shimizu joint venture, which consists of Shimizu Corp., Fujita Corp., Takenaka Civil Engineering Co. Ltd., and EEI Corp.

The Philippines and Japan signed in March 2018 the first tranche of the P355.6-billion loan for the project.

Based on the special terms for economic partnership of Japanese ODA loans, the primary contractor should be from Japan, while subcontractors can be from other countries.

The government unveiled in February parts of the Japanese-supplied tunnel boring machines which will be used to build the country’s first subway line.

The Transportation department targets to begin tunneling works within the year.

While the public will have to wait until 2025 for full operations of the 17-station subway, the government targets partial operations — covering the first three stations — by 2022.